OPENING CALLS:
| Class III Milk Futures: | 4 to 8 Higher |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | Steady to 1 Higher |
| Soybean Futures: | 2 to 3 Higher |
| Soybean Meal Futures: | $1 to $2 Lower |
| Wheat Futures: | Mixed |
MILK:
Class III milk futures in nearby contracts have rebounded and are trying to hold. Contracts for next year are struggling and maintaining the downtrend. Farms continue to hold cows and, in some cases, are expanding. The revenue from beef-on-dairy calves has been substantial and has changed the pattern of culling cows. A lower-producing cow that would usually be culled is now being retained due to it being paid for and producing calves. A high-value calf can make up for lower milk production. As long as calf prices remain high, this trend is not likely to change. The September Milk Production report will not be released today due to the government shutdown.
CHEESE:
Cheese prices are expected to continue to chop around. Blocks are expected to see further selling pressure as manufacturers need to move supplies and will try to take advantage of the recent increase in price. Barrel cheese continues to show limited activity, either from a tighter supply or lower demand. The upside price potential is limited.
BUTTER:
There is sufficient butter for demand, with increased butter production reducing the amount of butter moving out of storage to meet demand. Reports are that butterfat exports remain strong, but with the government shutdown, we have no official information as to the amount.
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